Local brands gain flavor

Tea companies across India, especially rural and semi-urban areas were as such facing the heat from local, regional brands. Sapat, Girnar, Wagh Bakri are some of the brands which give the big brands like Tata, Tetley, Lipton a run for their money. The reason – much lower prices.

The same trend is now being witnessed in the FMCG sector. Like the Mapro jams, Bedekar pickles, Mala’s squash, Ching’s noodles and sauces, Gowardhan Ghee, Ghari detergent has overtaken HUL’s Wheel in North India, snacks from Garden are giving Pepsi’s Lay’s some sleepless nights while Himangi hair oil is giving a tough competition to Marico’s Parachute and Emami’s Navratna. Local kirana shop owners indeed agree that people are buying more of these regional, much smaller brands than those sold by HUL, Nestle, Marico and other big wigs.

The reason? These smaller brands do not have middlemen commissions in between and thus are able to price their products much lower plus their product quality is as good as those on offer by big companies, sometimes even much better. And as these big companies are cutting costs and advertising expenses, these local brands are expected to gain more dominance.  Do not be surprised to see many of these big companies or PE funds trying to pick up stakes in these regional small but big brands.